Category: SG Stocks And Shares

Lee Metal privatisation deal – Congrats!

*Lee Metal- Received a pre-conditional offer from BRC Asia at $0.42/share, or 1.09x P/B.- The founding Lee family which owns 48.06% of share capital has given their undertaking for the voluntary offer.Seems like all the good companies are being privati…

3 Steps to buy Bitcoin in Singapore, or anywhere else?

Bitcoin prices set new records this year and forecast to continue to increase until the end of the year. Moreover, 2017 shows that digital assets, in general, have risen dramatically and created a tremendously large market cap of $66 billion. Of which, Bitcoin accounts for nearly 50%.

Bitcoin trading volumes in the world are increasing sharply every day, and are becoming an alternative investment channel for many people besides traditional channels such as real estate and gold. It is also a good time to get involved before the Bitcoin price bump at the end of the year.

There are a few ways to go about participating and be part of the Bitcoin craze. Personally, I followed it briefly in 2008 and gave up subsequently. It is only the recent years (2016?), Bitcoin and its counterparts came into limelight.

So there are a few ways to go about buying Bitcoin. I shall share the simplest and straightforward way to do so.

Step 1

Open a Remitano account HERE

After that, you can choose to buy USDT from a list of local sellers.

(Tether is pegged to the United States Dollar – it operates as a currency board, holding United States Dollar in reserve and issuing a cryptocurrency token for each reserve dollar. The exchange rate is 1 Tether (USD₮) to 1 United States Dollar (USD$).)

Step 2

Open a HitBit account HERE

Step 3

Transfer the bought USDT to HitBtc platform

Once you have transferred, you can do the buy and sell trades accordingly. And just like that you will be able to participate and join the crypto rally.

I have included the links with my referral links. It will benefit you and me.

Thank you all for your support.

Happy Lunar New Year!

SG market opens till 12pm today. Opens on 19th Feb. FYI. Happy Lunar New Year, May everyone happy and prosperous! Singapore Stocks to Watch * Low Keng Huat Singapore (LKH SP): Makes S$362M Enbloc Offer For Cairnhill Mansion*N…

Hock Lian Seng – trading at 5x Ex-(cash & investments) PE with 4 years of earnings visibility booked in

Our view: No TP on it, as liked HLS due to its good dividend yield, and as we hope to ride it as a proxy to the pick up in local construction demand. We believe current valuations are backed by the earnings visibility it has for the next 4 years, dividend yield of 3.6-5%, and strong cash/investments of S$0.29/share. Upside will come from sale of industrial property dev, and winning new contracts. 

Hock Lian Seng (HLS) is a BCA grade 1 contractor, with over 40 years of experience in the civil engineering and infrastructure projects in Singapore- with projects including MRT depots, bridges, expressways, water infrastructures and other specialised marine works.

Investment merits
An reputable civil engineering co. with over 40 years of experience and an established track record trading at 11.2x forward PE and ex(cash and investment securities) PE of 4.7x.

Strong balance sheet with net cash and investment securities of S$0.29/share (2016 mix: 84% corporate bonds, remaining in AFS equities) 

A near 100% cash company by end of 4 years? We estimate that the current orderbook if executed smoothly, may help HLS earn NPAT of S$22m/year for the next 4 years, and become a near 100% cash company by the end of the period, as it is trading at 4.7x forward ex(cash and investment securities) PE. (We assume HLS can sell out its industrial property shine@tuas which it is currently holding on its b/s at about S$96m- (believe will still incur more dev cost of about S$10-15m by the time it TOP), which will sort of net out the other liabilities in the balance sheet)

Positive industry outlook. (BCA projects the total construction demand to be awarded for 2018 to be between $26b-31b, up from $24.5b 2017E, driven by both private and public-sector projects. Major civil engineering contracts to be awarded include North South corridor, new MRT works and deep tunnel sewage phase 2 etc)- Link to BCA press release

Dividend yield of 3.6-5%. HLS has proven to be a good pay master in the past, steadily increasing its dividend payment over the years, with at least S$0.01625 DPS since 2010. In 2016, Management declared a total DPS of S$0.125 (S$0.10 special dividend, S$0.025 normal dividend). Assuming it maintain its normal dividend of S$$0.018-0.025, translates to yield of 3.6-5% (which is well supported by its strong balance sheet and good cashflow generation)


Costs overrun, margins not as high as expected, inability to win contracts etc

Also noted that while historically the capex for HLS is quite low at S$1-3m/year, in 2016-2017, there is a huge rise in CAPEX as it purchase more PPE and build warehouse (mentioned for its ongoing projects)- not sure how much more it will still incur, which may reduce its cash pile abit, but if we view it positively, hopefully they are expanding their fleet too so they can bid for their other projects given the pick up in local construction demand and not just be tied down to the Changi airport projects. 


What we think HLS’s earnings will be in the next 4 years?

Changi airport JV project with SCI only started contributing significantly in 3Q17. In its 3Q17 comments, HLS mentioned that the main rise in revenue (qoq and yoy) was due to the revenue contribution from the Changi airport JV project with SCI (where its 60% owned JV won a $1.1b contract from Changi airport which will run through 2022). In its 2Q17 commentary, contribution from this Changi airport JV is not yet significant, so 3Q17 was the first real quarter where revenue contribution from the project really kicked in (even though it was awarded only in Aug 16)

YE 31 Dec
















cost of sales
















Adjusted GP margin








**Adjusted GPM for 3Q16 were higher due to finalization of accounts for a few completed construction projects at end of defect liability period, such as Ark@Gambas, Ark@KB. 4Q16 GP was also helped by a $15m writeback of maintenance cost provision for completed projects (which we have already excluded in our adjusted GP calculation) 

If we have a look at the quarterly results, prior to 3Q17, sales were about S$23-30m, which we believe should be from projects such as Maxwell station, stabling yard at Gali batu etc.  Noted that this is a huge step up in sales and gross profit from 1Q and 2Q17. In its 3Q17 commentary, HLS attributed the rise in revenue mainly due to the contribution from the Changi Airport JV project. Hence, our 2 cents view is, it is reasonable to believe that the Changi Airport JV project has a much higher GPM than the other existing projects that HLS is currently working on.

Back of the envelope calculation

Assuming 1Q17 and 2Q17 revenue were derived mainly from projects such as Maxwell station etc (minimal contribution from Changi airport JV project), and these projects continue to contribute to HLS in 3Q17, we estimate the revenue and gross profit contribution from the new Changi JV project in 3Q17 to be about S$24m sales and S$5.6m in gross profit, implying a GPM for the project of about 23.6%. 



GP margin

Assumed average of 1Q17 and 2Q17 sales and gross profit (from other projects)




Assumed revenue contribution from new changi JV




3Q17 results




Based on the current orderbook of S$830m, we assume the mix of the orderbook is currently 



Blended GP margin mix: 19.8%

Changi JV



We less off the assume revenue contribution from the project in 3Q17

Others (eg. Maxwell station)



Based on the back of the envelope calculation, we assume the following
  • S$50m of sales per quarter (this will last them about 16 quarters or 4 years based on current order book of S$830m)
  • Assume GPM margin of about 18% (vs assumed orderbook mix blended GP margin mix of 19.8%)
  • Other costs (distribution, admin, other operating costs etc) per quarter of about S$2m. (From 1Q16 to 3Q17, other costs excluding change in fair value has been about S$1m-1.8m)
  •  Other income of S$0.75m/quarter (HLS recorded interest income from loans, investment securities of S$3.5-4.5m/year for 2015-2016)

Based on a quarterly sales of S$50m, we estimate, HLS can recognised net profit of S$5.7m/quarter or S$23m/year. And the orderbook of S$830m, can last/provide earnings visibility HLS for another 4.2 years (assuming S$50m sales recognised per quarter)



no. of quarters it can be recog


no. of years







Assume GPM of 18%

other costs/quarter



increase in depreciation


PPE increased by S$16m in 9M17 due to acq of office units for own use, construction of warehouse, purchase of PPE to meet requirement of ongoing projects- We depreciate it over 5 years

other income


interest income about $3-4m/year in 2015-2016

PBT per quarter





NPAT per quarter


11.5% NPM

annual NPAT


SGstocksandshares (SGSAS) 2017-12-14 07:42:00

Hi All, this is our first (official) fundamental stock pick as we seek to create a place with both fundamental and technical ideas for sharing with investors and traders reading our blog. Welcome any feedback and ideas from our readers. 

We will also be including it in our model dummy fundamental portfolio to track the performance of our investment track record (mostly for our own learning purposes). For fun reading and sharing. Happy holidays! 🙂

Hong Kong Land


One of the largest property developer and investment group in Asia, owning and managing almost 800,000 sqm of prime office and retail property in key Asian cities. Hong Kong and Singapore made up bulk of the portfolio with 452,000 sqm (56%) and 165,000 sqm (20%) respectively.

FY16 Operating income by segment:

Commercial property: 77.8% (should be mostly investment property rental income)

Residential property: 22.2% (should be mostly property dev profits)

Source: HKL

My View: 
  • While this is just an over simplistic way of looking at the stock, I see HKL as a good proxy to the property market in HK, with its Grade A office assets in Central HK, that may benefit from the booming Chinese economy. Valuations are also backed by its grade A prime office and retail properties such as (Exchange Square, Forum, Jardine House etc in HK, and 33% owned One raffles Quay and MBFC in Singapore). 
  • With P/B near a multi year low (0.5x), and potential for rise in dividend in the near term (given the dividend history and potential increase in rental income from contributions from new assets, and also multi year low net gearing), think HKL may be a good addition to my medium to long term portfolio at $7.22. 
  • While waiting, I get a dividend yield of 2.6 % (based on current DPS of $0.19- same as CPF – might as well)

Investment merits:

Trading At 0.5x P/B (with most of its assets at prime locations in cities such as Hong Kong and Singapore), which is near a multi year low and -1SD of its 10 year range. Also attractive when vs its peers like CK asset, Swire properties and Champion REIT who are trading at 0.6-0.9x P/B.
P/B is near a multi-year low and -1SD of its 10 year range.

Source: Bloomberg

Leasing momentum slowed, but overall rental growth still positive in HK. The vacancy rate for prime office space in HK Central rose to 2.4% in 3Q from 1.7% in 2Q, according to Colliers International. According to Colliers, Rents in Central/ Admiralty increased 0.4% QOQ, supported by sustainable renewal and new demand irrespective of the rising relocation trend. Hong Kong’s office area forms 48% of HKL’s total investment portfolio (by floor area).

  • ·   For 1H18, HKL’s HK central office portfolio as at 30thJun 17 maintained its high occupancy rate with only 1.5% vacancy rates. Average office rent rose to HK$106 psf vs HK$103 in 1H and 2H 16. Its HK central retail portfolio was 99.4% occupied with little change in base rents. There were some mildly negative rental reversions in its Sg office portfolio (S$9.1 psf vs $9.4 psf and $9.2 psf in 1H and 2H16 respectively), but occupancy rate remained strong with vacancy of only 0.2% as at end of Jun 17.

New contribution from Beijing retail mall coming on stream in 4Q?  (84% owned) WF Central (Beijing ) comprising luxury retail complex and 74 room Mandarin Oriental hotel is scheduled for completion in late 2017 and 2018 respectively.

Good free cashflow yield… As a result of its steady rental income from investment properties, HKL typically generates very good free cash flow of more than US$500m in the last 3 years (FY16: US$948m, translating to a free cashflow yield of 5.5%). This has helped it continuously pare down its net gearing to only 5.5%, which will allow HKL to scoop up good assets if investment opportunities arises. 


FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

Last 12M

12 Months Ending







Cash From Operations







Capital Expenditures







Free Cash Flow







Net Debt To Shareholders Equity







Source: Bloomberg

and potential for rising dividends? Noted that dividend/share has been stagnant for 2014-2016 at US$0.19 (dividend yield: 2.6%). If you study the pattern of its dividend payment, DPS remained at US$0.16 from 2009-2011 (3 years) before slowly increasing DPS by US$0.01/year from 2012-2014. If 3 years is a cycle, can we potentially see management raising dividend again this year by at least US$0.01 (or best 1 shot US$0.03). This is considering the potential rise in core investment property rental income (from the potential positive rental reversion in its HK office rentals, new revenue contribution from the new mall in Beijing, WF Central (84% owned) which will be coming up soon in 4Q, and continuously decreasing net D/E which is now at 5.5% (lowest in years)


FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

Dividends per Share










Diluted EPS










Dividend Payout Ratio









Source: Bloomberg

Technically, prices have been consolidating between $7.10-7.80, after a strong rally from $5.95 at the start of the year. With prices near the low end of the trading range, and potential near-term catalysts such as the completion of the 84% owned WF Central in Beijing and hopefully higher dividends (my guess- prays), hopefully the stock will be ready to retest $7.80 and breakout soon.

SGstocksandshares (SGSAS) 2018

SGStockandshares has started more than 5 years ago. I meet very interesting people along the way, sharing trading ideas as a stockbroker and exchanging market views. Some are my clients and many my friends now, helping each other to network and achieve…


The last report on Nov indicated that Parkson retail has S$12m losses, majorly due to an increment of operational cost and gestation of new stores.As a result, the shares have tanked from 0.125 to a low of 0.063.Recent buying volume below 0.075Note the…

SELL CALL: Singapore Dividends to Drop: study

Taken from : SINGAPORE dividends are in for another tough year to the dismay of the legions of retiree investors; they also take some shine off the bull run in which…

Singapore Daily: [Updates: REITs, FR SP]


Please be reminded to sell or settle for the shares within 5 days from purchase date to avoid force selling of shares by the company. As of 9th Oct, brokers will not be informed of client’s due shares. Still, I will do my best to help everyone when I can.

Thank you everyone for your kind support and understanding.

– The overbought market is likely to consolidate recent gains as investors await details of ECB’s taper plan today, which could commence in Jan ’18 following a decade-long easy monetary policy.
– Will be waiting for this evening 745pm for ECB interest decision
– Technically, the STI could pull back from overbought levels to near term support at 3,320. Overhead resistance remains at 3,355.

– 3Q17 net profit of $1.06b (+12%) topped expectations.
– Net interest income spiked 12% to $1.38b, driven by 11% loan growth and improved NIM of 1.66% (3Q16: 1.62%, 2Q17: 1.65%).
– Non-interest income was relatively flat at $978m (+1%), as strong wealth management fees (+32%) and life insurance profits (+23%) and net gain from investment securities (+55%) was offset by weaker trading gains.
– Provisioning fell 6% to $156m on lower general allowances, with NPL ratio at 1.3% (3Q16: 1.2%, 2Q17: 1.3%) and Tier 1 CAR at 13.1%.
– NAV/share of $8.76 translates to 1.31x P/B.

– 1QFY18 net profit jumped 9.2% to $90.7m, meeting estimates.
– Revenue grew 7% to $204.5m spurred by increased takings from securities trading and clearing (+9%) as well as derivatives (+14%).
– Operating margin inched up 0.9ppt to 51.8% despite incurring higher expenses related to Baltic Exchange.
– Interim DPS of 5¢ maintained.
– Expects momentum in market activity to return to higher levels of past years, with IPOs to reach high-20s by end Dec from 18 ytd.
– Last traded at 21.8x FY18 P/E.

*Mapletree Commercial Trust
– 2QFY18 results met expectation with higher DPU of 2.24¢ (+9.3%).
– Gross revenue and NPI spiked to $107.2m (21.7%) and $84.4m (23.4%), respectively, thanks to full quarter contribution from Mapletree Business City I and increased takings from Vivocity.
– For 1HFY18, VivoCity achieved 1.1% growth in tenant sales, while shopper traffic held steady following AEI works.
– However, portfolio occupancy dipped 0.5ppt q/q to 97.6%, while aggregate leverage held steady at 36.4%.
– Last traded at annualised 2QFY18 yield of 5.3% and 1.2x P/B.

– 2QFY18 DPU slumped 7.3% to 2.55¢, at the lower end of expectations.
– Gross revenue slipped 1.3% to $29.5m due to lower rental and recoveries from 20 Gul Way as four phases of the property reverted to multi-tenancy leases.
– On a flip side, NPI inched up 0.7% to $19.4m on lower property tax and land rent expenses on certain properties.
– Occupancy contracted to 88.8% (1QFY18: 91%), while aggregate leverage expanded to 37.3% (1QFY18: 36.3%).
– Currently trades at annualised 2QFY18 yield of 7% and 1.08x P/B.

*Keppel Corp
– Divesting its entire 100% stake in Keppel China Marina, which has a 80% JV that owns and develops an integrated residential cum marina development in Zhongshan, China, for Rmb2.9b.
– The sale is expected to yield a net gain of $290m and raise its NAV/share by 2.5% to $6.50.
– Trades at 16.5x forward P/E.

*Sembcorp Industries
– Developing and operating two grid-tied rooftop solar energy systems in Changi and Seletar for a combined project cost of $5.4m.
– Both photovoltaic systems have capacity of 4.1MW, with construction targeted for completion by Feb and Apr next year.
– Last traded at 15.3x forward P/E.

*Sino Grandness
– Disclosed that the group’s Garden Fresh loquat juices have been procured by China Southern Airlines and will be served at its premium lounge for business and first class travellers at Shenzhen airport.
– Group’s Grandness-branded canned fruits have also been procured for a third consecutive year for Air China, China Southwest Airlines and Sichuan Airlines.
– Last traded at 3.4x trailing P/E.

*Tung Lok Restaurants
– Profit warning for 1HFY18 due to a drop in sales as a result of the challenging economic environment.
– Results slated to be released on or before 14 Nov.
– Counter is loss-making and valued at 4.05x P/B.

– Acquired 30% stakes in two property development/ management firms for a combined Rmb1.64b.
– The firms are Hangzhou Kesheng Property (Rmb515.6m) and Hangzhou Keyi Property Development (Rmb1,124m).
– Trades at 5.7x forward P/E and 0.85x P/B.

*Hong Leong Asia
– In response to the SGX trading query on the recent share price surge, the group cited reasons include:
1) The disposal of 60% interest in Copthorne Hotel Qingdao by subsidiary HL Global Enterprises; and
2) CIMB’s coverage on group’s subsidiary China Yuchai with an Add recommendation on 20 Oct.
– Counter trades at 0.7x P/B.

– Advised by legal advisors that recent originating summons from noteholder Ravi Murarka, requesting for his notes to be redeemed, is without basis.
– Ezion will thus apply to the High Court to strike-out the originating summons.

*Anchor Resources
– Entered into a MOU with Beijing Fuhaihua Import & Export Corp to sell 300-500 tonnes of semi-processed gold concentrated ore per month.
– Trades at 2x P/B.

*Jubilee Industries
– Terminated the agreement to acquire Pioneer Venture, Yumei Tech and Yumei REIT from Seah Chong Hoe for $6m.
– This came on the back of unsatisfactory results following its due diligence.

*Regal International
– Completed the acquisition of Malaysia-based Wisma Majuniaga for $3.7m, via the issuance of new shares.
– To recap, Wisma Majuniaga holds the development rights for a 1.35ha land consisting 515 residential/retail units in Samarahan District in Sarawak, Malaysia.
– Trades at 18.8x forward P/E.



Companies & Markets 
Mapletree Commercial Trust Q2 DPU rises to 2.24 cents
Insufficient evidence for a proper audit, say independent auditors of China Fibretech

Real Estate 
Ascendas India Trust’s Q2 net property income rises 26% to S$31.6m
Keppel-KBS US Reit prices IPO at 88 US cents per unit

Banking & Finance 
Deutsche Bank in US$220m Libor settlement with US states
Don’t underprice global risks, MAS’s Menon warns

Energy & Commodities 
US crude slips on inventory build, petrol rallies
Gold turns positive after touching 2-1/2 week low

Amazon stretches delivery arm inside houses
GE, Microsoft to announce deeper industrial internet partnership

Amazon stretches delivery arm inside houses
Desaru Coast integrated development banks on regional demand as it prepares for June 2018 launch

Boeing keeps tough line on Bombardier as earnings fall
Boeing’s cash surges as 737 Max fuels record jet deliveries

Government & Economy 
Thais poised for final goodbye to beloved King Bhumibol
Don’t underprice global risks, MAS’s Menon warns

Life & Culture 
Rock pioneer Fats Domino dead at 89
Smashed: 30,000 beer bottles spark German highway chaos

Europe: Shares in correction mode as mixed earnings flow in
US: Stocks fall on earnings disappointments

Outlook 2018: What’s Your Plan?


Premium Content
Top Stories
URA’s request for en bloc tender details intrigues market


Up to a dozen IPOs coming to Singapore Exchange by year-end
Liechtenstein’s VP Bank ready to make acquisitions in Asia


Companies & Markets
Keppel-KBS US Reit to raise gross proceeds of US$553m
2018 may deliver better year for hospitality sector
First Sponsor’s Q3 profit up 13.9%, revenue down 21.4%

Real Estate
URA’s request for en bloc tender details intrigues market
Developers grow more optimistic but worry about cooling moves
Hudson’s Bay sells Lord & Taylor NY building

Banking & Finance
Liechtenstein’s VP Bank ready to make acquisitions in Asia
India’s record bank capital boost lauded by Fitch, Moody’s
EU scraps proposal to break up ‘too-big-to-fail’ lenders

Energy & Commodities
Singapore renewables developer Equis Energy acquired for US$5b in cash
Singapore’s second tranche of LNG imports to start soon
Chinese coal miner piles on bullish copper bets

Sony’s big bet on sensors that can see the world
Apple cuts accuracy of Face ID to get iPhone X to market on time
Tencent’s Ma is Asia tech’s Warren Buffett

Retailers have a new secret weapon: the private label
Amazon video push aims to keep shoppers from YouTube search
McDonald’s sheds stores and gains customers with budget appeal

10 years on, the A380 has yet to fly high
Canada pushed for Airbus deal as Bombardier courted China: sources
Airlines get ready for new US security rules from Thursday

Government & Economy
US National Security Adviser calls on PM Lee
No clear heir as Xi consolidates power
Singapore productivity loss due to sick leave may hit S$3.3b by 2030: Mercer study

Trump’s planned no-show at key summit signals lack of interest in Asia
Can S’pore become a test bed for new energy?
Is the time right for the Fed to tighten policy?

Life & Culture
Williams eyes revenge in all-or-nothing showdown with Muguruza
Robert Guillaume, star of TV’s Benson, dies at age 89
Einstein’s note on modest living sold at auction for US$1.56m

Up to a dozen IPOs coming to Singapore Exchange by year-end